The Jakarta Composite Index (IHSG) experienced a significant downturn in the first trading session on Wednesday (3/6), plummeting by 4.94% or 305.94 points to close at 5,889.48. This sharp decline in Indonesia’s benchmark stock index coincided directly with the continued weakening of the rupiah exchange rate against major currencies.
Ahmad Faris Mu’tashim, an Investment Specialist at Korea Investment Sekuritas Indonesia, attributed today’s IHSG slump primarily to the rupiah’s depreciation. He highlighted that the Indonesian currency was trading precariously within the 17,900 range, nearing the critical 18,000 level against the US dollar.
“This situation suggests a sideways-to-bearish outlook for the IHSG, at least for the next few weeks,” Ahmad stated in an official release on Wednesday (3/6), indicating a cautious market sentiment moving forward.
He further elaborated on the conditions for a market reversal, explaining that for the IHSG to shift into a structural bullish trend, it would need to reach and sustain levels between 6,700 and 7,000.
Corroborating this perspective, Elandry Pratama, an analyst at Panin Sekuritas Pondok Indah branch, also cited domestic factors, particularly the weakening rupiah, as a key driver behind the IHSG’s decline. Additionally, he pointed to substantial selling pressure on large-capitalization stocks, which hold a dominant weight in the index, as a significant contributor to the overall market downturn.
“When several big-cap stocks undergo simultaneous corrections, their cumulative impact on the IHSG becomes quite substantial,” Elandry explained, underscoring the systemic effect of concentrated selling in high-value equities.
Reviewing the trading data from the Indonesia Stock Exchange (IDX) for the first session, the market recorded a robust transaction volume of 26.37 billion shares, executed across 1.76 million trades. The overall market capitalization stood at Rp 10,357 trillion, with the total transaction value for the midday session reaching Rp 14.89 trillion.
The session painted a stark picture of widespread bearishness: only 35 stocks managed to close higher, while an overwhelming 714 stocks declined, and 64 remained unchanged, illustrating the pervasive negative sentiment across the market.
Every sector listed on the IDX finished in negative territory. The basic industry sector suffered the most severe blow, correcting sharply by 10.25%. Notable declines within this sector included PT Chandra Asri Pacific Tbk (TPIA), which plummeted 13.42% to Rp 1,645; PT Amman Mineral Internasional Tbk (AMMN), which slid 14.91% to Rp 3,310; and PT Merdeka Copper Gold Tbk (MDKA), which fell 13.26% to Rp 2,290.
The nation’s major banking stocks, typically considered resilient pillars of the Indonesian economy, also faced considerable pressure. Shares of PT Bank Central Asia Tbk (BBCA) dropped 3% to Rp 5,650; PT Bank Rakyat Indonesia Tbk (BBRI) decreased by 3.62% to Rp 2,930; PT Bank Mandiri Tbk (BMRI) weakened by 2.64% to Rp 4,060; and PT Bank Negara Indonesia Tbk (BBNI) plunged by 3.99% to Rp 3,610.
Despite the broad market weakness, some stocks saw high trading activity. PT Chandra Asri Pacific Tbk (TPIA) registered the highest trading value by midday, reaching Rp 1.89 trillion. It was closely followed by PT Amman Mineral Internasional Tbk (AMMN) with Rp 1.03 trillion in transactions, and PT Bank Central Asia Tbk (BBCA) with Rp 966 billion, indicating significant investor engagement even amidst the downturn.
In a contrasting regional trend, most Asian exchanges showed positive performance up to midday. Japan’s Nikkei index advanced 2.88% to 68,659, and the Shanghai Composite climbed 0.56% to 4,097. However, Hong Kong’s Hang Seng index deviated from the regional uptrend, recording a decline of 1.68% to 25,599.
Here are the Top Gainers for the session:
- PT DCI Indonesia Tbk (DCII) surged 2.35% to Rp 194,500.
- PT Jayamas Medika Industri Tbk (OMED) increased 0.97% to Rp 208.
- PT Mitra Adiperkasa Tbk (MAPI) climbed 0.67% to Rp 1,495.
Conversely, the Top Losers were:
- PT Petrosea Tbk (PTRO) plunged 15% to Rp 4,080.
- PT Amman Mineral Internasional Tbk (AMMN) dropped 14.91% to Rp 3,310.
- PT Archi Indonesia Tbk (ARCI) fell 14.04% to Rp 1,010.
Summary
The Jakarta Composite Index (IHSG) experienced a significant downturn in its first trading session on Wednesday, plummeting by 4.94% to 5,889.48. This sharp decline was primarily attributed to the continued depreciation of the rupiah against the US dollar, which was trading precariously near the 18,000 level. Additionally, analysts pointed to substantial selling pressure on large-capitalization stocks as a key driver of the market’s fall.
The market displayed widespread bearishness, with 714 stocks declining and all IDX sectors finishing in negative territory, including major banking stocks like BBCA and BBNI. The basic industry sector suffered the most severe blow, correcting by 10.25%. Analysts project a sideways-to-bearish outlook for the IHSG in the coming weeks, requiring levels between 6,700 and 7,000 for a structural bullish reversal.
